Introduced
by
Gov. Jennifer Granholm’s proposed revision of the state business tax structure, which would repeal the current 2010 sunset of the Single Business Tax. This is intended to be “revenue neutral,” meaning it would not change aggregate tax revenues, although some companies would pay more and others less. It would lower the SBT rate from 1.9 percent to 1.2 percent, but also triple the profits component of this value-added tax (VAT), eliminate a deduction for firms with a high proportion of employees, and make other tax base changes. The package doubles the tax on insurance companies, establishes new research and development tax credits, allows credits against property tax paid on some types of capital equipment (but not others), allows occupancy rate commercial property tax assessment increases, and more. See also House Bills 4476 and 4477, and Senate Bill 295.
Referred to the Committee on Finance
